How Looka got a 2400% ROI using Survicate

With only one Survicate Survey sent using Intercom, Looka is able to collect a vast amount of feedback that benefits the company’s rapid growth.

Looka (formerly known as Logojoy) is an online logo maker created in response to the time-consuming process entrepreneurs go through when creating a logo. This cutting-edge solution cuts the time and costs needed to get the perfect design by using AI to generate custom logos.

Michael Irvine, Head of Marketing, turned to Survicate when they encountered a friction point in their customer journey. “Survicate helped us identify why customers don’t purchase a logo,” Michael says, “this allows us to address their individual needs and increase our purchase conversion rate. In overall calculation for every dollar spent on a Survicate subscription, we generate about $25 in additional revenue from our customers.”

The friction point occurred after customers had designed their logos and demonstrated intent to buy. But something was holding them back. Looka already used Intercom for live chat customer service, but they were only able to solicit feedback from these users if they returned to the app for multiple sessions. But what about those customers who never returned? Their feedback would be most valuable.

Improving through customer feedback

Michael’s role at Looka is to ensure more and more customers start using their service. “That alone is not enough” he adds, “because if we’re acquiring users that have no intention of purchasing a logo, it’s useless.” Thus, Michael is also responsible for turning new leads into paying customers.

His actions affect the entire company, including the development, customer success, and marketing teams. But, as Michael makes clear, “any company that has ambitions to be a unicorn or a household name one day – especially if they’re in the early stages – needs to listen to their customers.”

Intercom & Survicate: a match made in heaven

To collect feedback from customers who didn’t return to the app, Looka started to use Survicate’s integration with Intercom. Taking advantage of the potent email capabilities of Intercom, Michael created an automated email.

The message contains a straightforward survey, asking customers the reason for not completing their purchase. Customers can choose one of the following answers: Not ready to start my business; The logos are too expensive; Can’t perfect my logo design; Too busy to finalize my logo; I used one of your competitors. The answers are followed by an open-ended question asking for more details. “It’s amazing just how many customers are willing to respond to those surveys,” says Michael. This survey alone is providing Looka with valuable information used to improve the customer experience.

Firstly, the survey data is analyzed both qualitatively and quantitatively. “We review close to a thousand responses every week,” says Michael, “and the quantitative analysis allows us to track any changes in customer experience, which is particularly important when there’s been a change in pricing or a change in our app’s design capabilities.”

The answers are also reviewed qualitatively, week to week, regardless of whether there have been any changes to the product. “There are often little golden nuggets of information to be found,” says Michael, “and with a weekly Survicate email report we know exactly what happened through the last 7 days.”

Secondly, Michael launched automatic email campaigns for each of the answers. “The integration with Intercom allows us to immediately know which answer our customers clicked on in the surveys, and we’re able to tag them in the appropriate manner to generate an automated email based on their response,” Michael reveals. For example, the “Can’t perfect my logo answer” triggers an email after 24 hours. It offers the customer the ability to get a one-on-one consultation with a customer success representative to help them perfect their design.

From logos to business education

The most surprising insight Michael gleaned from these surveys was that the second biggest reason for users not purchasing a logo was that the customers weren’t ready to start their business. “It was quite shocking to me,” he says, “that you would look for a logo if you hadn’t settled on a business idea or name and incorporated it yet.” To anyone familiar with building a brand, the logo is actually one of the last steps to take. But because Looka’s customers are often side-hustle entrepreneurs or fresh companies, many of them use the logo as an inspiration to plan their business.

“We decided to launch an educational campaign — the insight there was, we need to be educating customers on how to get started with a business, even before the logo itself,” Michael says. It sparked a content initiative that includes case studies and articles about launching a new business, reviewing types of logos, and choosing a great name for the company. Now, people who aren’t ready to start their business receive an email with useful tips and articles, such as How to Succeed at a Side Hustle When You’re Working Full-Time. Michael admits, “it’s one of the most common scenarios of our customers. We’re trying to show our customers that we’re listening and when the right time comes, actually help them out to get the amazing logo that they always wanted.”

Logo for every pocket

Another valuable insight derived from the survey is about pricing. A significant percentage of customers who didn’t purchase the logo package complained that the packages were too expensive. This led Looka to a brainstorming session around adjusting pricing for different geographies. While $65 USD for a premium logo package may seem reasonable in North America, entrepreneurs in developing countries may find it cheaper to hire a graphic designer. “Insight like this is causing us to reevaluate our pricing strategy globally,” says Michael.

Looka is able to drive growth using feedback from just one Survicate survey. Accurately distributed and analyzed, it provides valuable data that allows the company to create a more customer-focused approach.

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